STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
BSX share code: STP.BH JSE share code: STP
ISIN: GG00BFWMR296
(?Stenprop?)
DISPOSAL OF OFFICE BUILDING LOCATED AT 25 ARGYLL STREET
1. INTRODUCTION
Shareholders are advised that Stenprop has disposed of its 50% interest in the property known as 25 Argyll Street, situated at
252-260 (even) Regent Street and 19-27(odd) Argyll St, London, W1 (?the Property?) via a sale of its shares in Stenprop Argyll
Limited (?SAL?) to the holders of the remaining 50% interest, being Darlaya Limited (?DL?) and Yennelle Limited (?YL?) which
each hold 25% of the issued share capital of SAL, (?the Buyers?) for a consideration of #22.78 million (?the Consideration?)
which values the Property at #83.4 million (?the Disposal?).
2. RATIONALE FOR THE DISPOSAL
Stenprop has previously announced its intention to become a specialised UK multi-let industrial (?MLI?) REIT and, over the
next few years, to sell substantially all of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.
The Disposal is in line with this strategy.
3. TERMS OF THE DISPOSAL
In terms of the Sale and Purchase Agreement signed on 4 June 2018 (?the SPA?), Stenprop (UK) Limited (?Stenprop UK?), a
wholly owned subsidiary of Stenprop, sold all of its shares in SAL with effect from the date of the SPA,
The buyer acquired Stenprop UK?s shares in SAL for an initial consideration of #22.78 million which was settled in cash, and
was based on the estimated net asset value of SAL at the date of the SPA. The Consideration is subject to a further post-
completion adjustment to take account of any difference between the actual and the estimated net asset value of SAL at the
date of the SPA.
Normal warranties and indemnities for a transaction of this nature have been provided by Stenprop.
4. PROPERTY SPECIFIC INFORMATION
Weighted Valuation* After tax EPRA
average (#) earnings**
rental per (#)
square
GLA metre
Property name Geographic location (UK) Sector (sq.ft) (# psf)
252-260 (even) Regent
25 Argyll Street Street and 19-27(odd) Office 63,091 65.15 83 400 000 1 298 641
Argyll St, London, W1
*The value attributable to the 100% of the Property, as determined in accordance with Royal Institution of Chartered Surveyors
standards by JLL, an external valuer, is the valuation which will be reflected in Stenprop?s consolidated statement of financial
position at 31 March 2018, and is the same as the value derived from the Consideration. This compares with the value
attributable to the Property at 30 September 2017, as determined in accordance with Royal Institution of Chartered Surveyors
standards by JLL, of #81 million.
**Stenprop?s share of the after tax EPRA earnings attributable to SAL is based on Stenprop?s consolidated statement of
comprehensive income for the year ended 31 March 2018.
5. CATEGORISATION OF THE DISPOSAL
The Disposal is classified as a category 2 transaction in terms of the JSE Listings Requirements. Accordingly, it is not subject to
approval by shareholders.
Stenprop has a primary listing on the Main Board of the JSE and a secondary listing on the BSX.
4 June 2018
JSE sponsor
Java Capital
Bermuda Stock Exchange sponsor
Estera Securities (Bermuda) Limited